Good day, and welcome to the DHT Holdings Q2 2012 Earnings Call. Today's call is being recorded. And at this time, I'd like to turn the call over to your host for today, Mr. Svein Moxnes Harfjeld. Please go ahead, sir.

Thank you, Svein. This conference call is also being broadcast on our website at dhtankers.com, and a replay of this conference call will be available on the website. In addition, our Form 6-K, embedded in this news release, will be filed with the SEC.

As a reminder, this conference call contains forward-looking statements that are governed by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include statements regarding DHT's prospects; the outlook for tanker markets in general; expectations regarding daily charter hire rates and vessel utilization; forecasts of world economic activity; oil prices and oil trading patterns; expectations regarding seasonal fluctuations in tank demand; anticipated levels of new building and scrapping; and projected dry dock schedules, involve risks and uncertainties that are more fully described in our filings made with the SEC. Actual results may differ materially from expectations reflected in these forward-looking statements. Svein?

Svein Moxnes Harfjeld

Thank you, Eirik. We will now address the financial highlights of the quarter. Following this, we will highlight how we are positioned for these continued tough times.

Our EBITDA came in at $11 million with net income of $2.7 million and earnings per share of $0.02. The earnings per share is calculated based on an average share count during the quarter of about $140 million and before the reverse stock split on a fully-converted basis. Adjusted for the reverse stock split, the earnings per share would have been $0.23.

We will pay a dividend of $0.24 per common share and $3.40 per preferred share for the quarter. The dividend will be payable on August 16 for shareholders of record as of August 9. During the quarter, we have 3 VLCCs in the TI Pool, 2 for the full quarter and 1 from May. Our vessels generated average time charter-equivalent earnings of $25,000 per day. The remainder of the fleet was either on time charters or long-term variable charters during the quarter. We commenced an equity offering in the first quarter that was backstopped by Anchorage Capital. The offering and the concurrent private placement closed on May 2, generating net proceeds of approximately $76.2 million.

At our Annual General Meeting, the shareholders voted to authorize a 12-for-1 reverse stock split of our common stock. The reverse stock split became effective after the close of business on July 16. We prepaid $13.6 million under the credit facilities with DVB and DNB combined. These prepayments was equal to all scheduled installments through 2014.

Following the fleet appraisal for the second quarter, we repaid $18 million under the RBS facility. Further and following the fleet appraisal for the third quarter conducted in early July, we repaid $3.1 million in July. The next scheduled installment under the RBS facility is on the third quarter of 2015.

DHT Regal completed its third special survey and dry dock on time and on budget and entered the TI Pool during the quarter. The Aframaxes Overseas Rebecca and Overseas Ania were both redelivered under that time charters, and subsequently, sold during the quarter. We incurred a books loss in -- a book loss in the quarter of $1.4 million on the sale of the 2 vessels in the second quarter.

A loss of $900,000 related to the Overseas Rebecca was recorded in the first quarter of 2012. The proceeds from the sales were used to further reduce the outstanding debt under the RBS credit facility.

The Aframax DHT Sophie was redelivered under its time charter in June 2012. The vessel is currently trading in the stock market with the intention to enter into a pool during the second half of 2012.

With that, I hand over to Trygve, who will highlight how we are positioned for these continued tough times. Trygve?

Trygve Preben Munthe

Thank you, Svein. This is certainly difficult times in the tanker markets. As we all know, we're suffering from oversupply with way too many new buildings coming into the market. When we combine this with a generally soft world economy, we believe the tanker market recovery is some time away. We believe DHT is well-positioned for this market environment.

As you've have heard us say numerous times, we have no scheduled installments until the first quarter of '15 and no debt maturities until 2016 and '17. Further, we enjoy extraordinarily low interest rates on a large portion of our loans. As a matter fact, our current weighted average interest cost is only 3.16%, and that's all in. This comes out to about $6.9 million per year or about $2,100 per day per shift. Importantly, once our last interest rate swaps comes to an end in January next year, the interest rate drops to 1.6% all in, and the annual interest cost to $3.5 million, which equates to a meager $1,100 per day per shift. Of course, all else being equal.